Donato borrows the funds from Eveready Bank to buy real estate and build a home.Donato's first draw of funds pays for the land.Subsequent draws occur at various stages of construction until the house is ready for occupancy.This is

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A construction loan is specifically designed to fund the construction of a new home or building. It allows borrowers to draw funds at various stages of the construction process, as in Donato's case, until the project is complete. A balloon mortgage is a type of loan that has a large payment due at the end of the loan term, usually after a series of smaller payments. A participation loan is a type of loan in which multiple lenders fund a single borrower. A reverse mortgage is a loan for seniors that allows them to convert the equity in their home into cash. None of these options fit Donato's situation as well as a construction loan.

Donato Borrows the Funds from Eveready Bank to Buy Real